A sales invoice included the following information: merchandise price, $11,100; terms 1/10, n/eom, FOB shipping point with prepaid freight of $400 added to the invoice. Assuming that a credit for merchandise returned of $1,000 is granted prior to payment and the invoice is paid within the discount period, what is the amount of cash that should be received by the seller? a.$10,399 b.$11,389 c.$12,379 d.$990

Assuming that a credit for merchandise returned of $1,000 is granted prior to payment and the invoice is paid within the discount period, the amount of cash that should be received by the seller is (a) $10399

Explanation:

In the first step we will deduct the credit for merchandised return from the merchandise price

=($11,100-1$000)=$10,100 (a)

Then we multiply the result by terms (i.e 1/10=.01)

=($10,100*.01)=$101(b)

Then we subtract the result of equation a with equation b

($10,100-$101)=$9,999

Then we add the prepaid freight charges to the result obtained

($9,999+$400)=$10399

$10399

answer; read and consider the content of the items;